Key Insights:
- On Monday, XRP bucked the top ten crypto trend, falling by 4.61% to end the day at $0.46791.
- Optimism towards the SEC v Ripple case softened, leading investors to lock in profits.
- However, the technical indicators are bullish, with XRP sitting above the 50-day EMA, supporting a return to $0.50.
On Monday, XRP slid by 4.61%. Reversing a 0.50% gain from Sunday, XRP ended the day at $0.46791.
A bullish start to the session saw XRP strike an early high of $0.50134. Coming up short of the First Major Resistance Level (R1) at $0.5153, XRP slid to a late morning low of $0.45800. XRP fell through the First Major Support Level (S1) at $0.4706 before briefly revisiting $0.479.
A lack of SEC v Ripple case updates and external market forces led to a shift in sentiment towards the case. Optimism towards an early conclusion had fueled an XRP return to $0.55 before pulling back.
Investor Optimism Wanes as Parties Remains Silent on Next Steps
Optimism towards a favorable and early conclusion to the SEC v Ripple case waned on Monday. Hopes of Court activity in response to the Motions for Summary Judgment filings waned, with the Court schedule unchanged at the start of the week.
Investors may also have been disappointed that the SEC and Ripple did not announce any plans to settle.
Barring a surprise settlement, the next date on the schedule is October 18, by which time Parties must file all materials relating to oppositions to summary judgment motions.
XRP Price Action
At the time of writing, XRP was up 0.64% to $0.47092. A mixed start to the day saw XRP fall to an early low of $0.46559 before rising to a high of $0.47462.
Technical Indicators
XRP needs to move through the $0.4758 pivot to target the First Major Resistance Level (R1) at $0.4935 and the Monday high of $0.50134. Sentiment towards the SEC v Ripple case and support from the broader crypto market would bring $0.50 back into play.
An extended rally would support a run at the Second Major Resistance Level (R2) at $0.5191 and $0.52. The Third Major Resistance Level (R3) sits at $0.5624.
Failure to move through the pivot would leave the First Major Support Level (S1) at $0.4502 in play. Barring an extended sell-off, XRP should steer clear of the Second Major Support Level (S2) at $0.4324.
The Third Major Support Level (S3) sits at $0.3891.
The EMAs and the 4-hourly candlestick chart (below) sent a bullish signal.
At the time of writing, XRP sat above the 50-day EMA, currently at $0.45009. The 50-day EMA pulled away from the 100-day EMA, with the 100-day EMA widening from the 200-day EMA. The signals were price positives.
Following the September 19 breakout from the 50-day EMA, the current trend supports an XRP breakout from R1 ($0.4935) to retarget $0.52. However, a slide through S1 ($0.4502) and the 50-day EMA ($0.45009) would give the bears a run at S2 ($0.4324). The 200-day EMA sits at $0.38752.